London, June 17: The United Kingdom (UK) firms are looking set to cut short their investments in 2019 by the most in 10 years as Brexit crisis drags on, questioning over the future economic growth prospects, according to a survey showed on Monday.
According to Reuters news reports, business investments, a key for pay growth and productivity, was forecast to decrease by 1.3 percent in 2019 ahead of growing by only 0.4 percent in 2020.
The British Chambers of Commerce (BCC) nudged up its economic growth forecast for this year to 1.3 percent depicting a surge in amassing by firms before the actual Brexit deadline scheduled in March.
However, the employers’ team has cut its forecast for the growth to 1.0 percent in 2020, sharply decreasing from an earlier estimate of about 1.3 percent, before a marginal pick-up in 2021 up to 1.2 percent.
Adam Marshall, the BCC director, has stated firms were not able to push with long-term plans and procedures due to continued uncertainty over Brexit – the withdrawal of Britain from the European Union (EU) which is now rescheduled for October 31.
“Businesses are putting resources into contingency plans, such as stockpiling, rather than investing in ventures that would positively contribute to long-term economic growth,” Marshall said.
He added, “This is simply not sustainable. Business communities expect the next prime minister to quickly find a sensible and pragmatic way forward to avoid a messy and disorderly Brexit.”
According to the official figures that have been released, business investments have fallen throughout 2018 – the largest run since the global financial crisis – before its pickup slated in 2019.